(PLEASE SEE ATTACHED DOCUMENT) Problem 13-5A Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. I

(PLEASE SEE ATTACHED DOCUMENT) Problem 13-5A

Suppose selected financial data of Target and Wal-Mart for 2014 are presented here (in millions).

Target

Corporation Wal-Mart

Stores, Inc.

Income Statement Data for Year

Net sales $65,380 $415,836

Cost of goods sold 44,999 300,351

Selling and administrative expenses 14,927 77,202

Interest expense 690 1,949

Other income (expense) (76 ) (383 )

Income tax expense 1,360 7,222

Net income $ 3,328 $ 28,729

Balance Sheet Data

(End of Year)

Current assets $16,174 $47,571

Noncurrent assets 26,924 122,948

Total assets $43,098 $170,519

Current liabilities $10,720 $54,168

Long-term debt 18,375 43,168

Total stockholders’ equity 14,003 73,183

Total liabilities and stockholders’ equity $43,098 $170,519

Beginning-of-Year Balances

Total assets $44,276 $162,550

Total stockholders’ equity 13,595 64,266

Current liabilities 10,191 54,755

Total liabilities 30,681 98,284

Other Data

Average net accounts receivable $7,789 $4,140

Average inventory 7,110 33,407

Net cash provided by operating activities 5,929 25,981

Capital expenditures 1,785 12,376

Dividends 482 3,988

(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

Target Wal-Mart

(1) Current ratio.

:1

:1

(2) Accounts receivable turnover.

times

times

(3) Average collection period.

days

days

(4) Inventory turnover.

times

times

(5) Days in inventory.

days

days

(6) Profit margin.

%

%

(7) Asset turnover.

times

times

(8) Return on assets.

%

%

(9) Return on common stockholders’ equity.

%

%

(10) Debt to assets ratio.

%

%

(11) Times interest earned.

times

times

(12) Current cash debt coverage.

times

times

(13) Cash debt coverage.

times

times

(14) Free cash flow. $

$

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Problem 13-5A
Suppose selected financial data of 
Target
 and 
Wal-Mart
 for 2014 are presented here (in millions).
Target
Corporati
on
Wal-Mart
Stores, Inc.
Income Statement Data for Year
Net sales
$65,380
$415,836
Cost of goods sold
44,999
300,351
Selling and administrative expenses
14,927
77,202
Interest expense
690
1,949
Other income (expense)
(76 )
(383 )
Income tax expense
1,360  
7,222  
Net income
$ 3,328  
$ 28,729  
Balance Sheet Data
(End of Year)
Current assets
$16,174
$47,571
Noncurrent assets
26,924  
122,948  
Total assets
$43,098  
$170,519  
Current liabilities
$10,720
$54,168
Long-term debt
18,375
43,168
Total stockholders’ equity
14,003  
73,183  
Total liabilities and stockholders’ equity
$43,098  
$170,519  
Beginning-of-Year Balances
Total assets
$44,276
$162,550
Total stockholders’ equity
13,595
64,266
Current liabilities
10,191
54,755
Total liabilities
30,681
98,284
Other Data
Average net accounts receivable
$7,789
$4,140
Average inventory
7,110
33,407
Net cash provided by operating activities
5,929
25,981
Capital expenditures
1,785
12,376
Dividends
482
3,988
(a) 
For each company, compute the following ratios. 
(Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

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Target
Wal-Mart
(1)
Current ratio.
 :1
 :1
(2)
Accounts receivable turnover.
 times
 times
(3)
Average collection period.
 days
 days
(4)
Inventory turnover.
 times
 times
(5)
Days in inventory.
 days
 days
(6)
Profit margin.
 %
 %
(7)
Asset turnover.
 times
 times
(8)
Return on assets.
 %
 %
(9)
Return on common stockholders’ equity.
 %
 %
(10)
Debt to assets ratio.
 %
 %
(11)
Times interest earned.
 times
 times
(12)
Current cash debt coverage.
 times
 times
(13)
Cash debt coverage.
 times
 times
(14)
Free cash flow.
$
$
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